• Kasikorn Research Center estimates that in 2021, the spending on home healthcare services in Thailand will be between 2.2 and 2.3 billion baht, showing a slight growth of 2.4% (YoY). This growth is driven by an increase in service providers and a wider variety of services, along with the COVID-19 situation that has heightened the demand for home healthcare services among the elderly and patients in need, as well as those seeking alternative services due to their inability to visit healthcare facilities. However, there are still limitations regarding personnel allocation and COVID-19 prevention measures, which restrict the overall market growth.

• The Kasikorn Research Center believes that the home healthcare market may grow gradually at an average rate of 7.3% (CAGR) over the next three years. This is due to consumers still having various options for regular healthcare services, and the high-income customer segment having limited access to suitable locations for receiving services at home. Additionally, there are constraints regarding the number of certified medical personnel and the establishment of safety standards to build trust among service users. If there are plans to prepare for long-term healthcare service needs, the home healthcare market is expected to expand further, aligning with the increasing demand for healthcare services.

The global home healthcare market is projected to continue growing at an average rate of approximately 5.9% (CAGR) from 2022 to 2026, primarily driven by advancements in medical technology that allow for a broader range of services outside healthcare facilities, as well as the aging population worldwide. Consumer behavior is increasingly health-conscious, leading to a higher demand for medical services and a willingness to pay for convenient, safe, and personalized healthcare solutions.

While the majority of the global home healthcare market value is concentrated in North America and Europe, where healthcare systems and services are well-developed, the growth trend for home healthcare services in the Asia-Pacific region is expected to outpace that of other regions from 2022 to 2026. This is partly due to the aging population in several Asian countries and the increasing demand for accessible medical services, driven by the rising middle class with greater purchasing power and the development of healthcare systems in countries like Japan and Singapore, which are expanding their home healthcare services targeting primarily the elderly and working-age individuals with purchasing power. In contrast, home healthcare services in Thailand are still primarily focused on patients and tend to have relatively high costs per visit, limiting their popularity. However, Thai operators are beginning to increase home healthcare services in response to consumer demand.


*Note: Example of service fees
Source: Arizton, The Insight Partners, Statista compiled by Kasikorn Research Center

 Previously, the demand for home healthcare services in Thailand was largely limited to critically ill patients or those with chronic illnesses who had high purchasing power. These individuals required services, yet there were not many providers available. However, home healthcare services have expanded from primarily serving patients to include preventive medical care, health management, and services for the elderly needing assistance, with a wider variety of services available. The COVID-19 situation has also led some consumers to opt for home healthcare services with appropriate public health and safety measures to avoid the risks associated with traveling to hospitals or due to health necessities.

The demand for accessible and convenient medical services has prompted existing players in the healthcare market, such as hospitals, clinics, and health centers, to accelerate their marketing of out-of-facility medical services. Additionally, new players focusing on specialized health services, including SMEs and health startups, are entering the market, providing citizens with more options and promoting competition in service quality and affordability.

The types of home healthcare services are becoming increasingly diverse to broaden access to a wider customer base, transitioning from services solely for patients to preventive services, which can be categorized into three main groups:
1) Specialized nursing services, such as post-operative care, nutritional planning, and medication management as prescribed by doctors.
2) Procedural and therapeutic services, such as vaccination, blood tests, and physical therapy.
3) Trained and certified caregiver services, such as assistance with daily activities and transportation to hospitals.

 Kasikorn Research Center estimates that in 2021, the spending on home healthcare services in Thailand will be between 2.2 and 2.3 billion baht, showing a slight growth of 2.4% (YoY). Although the market is growing due to increased demand for home healthcare services during COVID-19 among the elderly and patients in need, as well as those seeking alternative services due to their inability to visit healthcare facilities, there are still limitations regarding personnel allocation and COVID-19 prevention measures, which restrict overall market growth. The main customer segment will be those with high purchasing power and suitable locations for receiving services at home, primarily focusing on patients with medical necessities or those needing assistance, as well as services specifically for the elderly and preventive services for working-age individuals seeking convenience in accessing medical care. However, the business outlook still depends on the recovery of the economy and purchasing power, which will affect spending on healthcare services beyond basic health expenses and COVID-19 prevention measures. This suggests that the initial growth of home healthcare services may be limited but has the potential for continuous expansion in the long term.

In the near future, Kasikorn Research Center anticipates that the home healthcare business will grow gradually due to ongoing limitations regarding personnel and the need for purchasing power recovery, with an expected average growth rate of 7.3% (CAGR) over the next three years. Notably, the most promising services for market expansion will be procedural and therapeutic services, particularly preventive procedures such as vaccinations, physical therapy, and targeted muscle relaxation treatments, along with caregiver services that cater to the daily needs of the elderly, alongside other support services like safe patient transportation and trained caregivers for proper patient care, as well as rental of basic medical equipment for home use.

 However, aside from the still fragile domestic purchasing power, the expansion of home healthcare services also faces challenges, including a limited number of qualified and certified personnel. Additionally, the entry of new players, particularly SMEs and startups, faces funding constraints, as well as the need to establish trust in standards and safety. Kasikorn Research Center believes that if there are plans to prepare personnel and promote new businesses like Health Tech startups, there are still opportunities to expand the market to accommodate health tourism, which sees over 2.2 million visitors annually (averaged from 2017-2019 before the COVID-19 outbreak) from key markets such as China, ASEAN, and the Middle East, which consist of high-income groups seeking personalized and private services. Most of these tourists come for relatively uncomplicated medical services, including comprehensive alternative health services, which could present opportunities for business expansion as the tourism situation recovers in the future.

Thank you for the analysis from Kasikorn Research Center